17 Masterclass VBA - Introductie in private equityII Institutional Investors – Risk & ReturnAssessment of the expected risk/correlation and return is requiredToday we will focus on the Thomson Venture Economics (TVE) data: - Data dating back to Good market coverage (as much as 70%) - Data is not verified by a third party - The historical database changes through timeMasterclass VBA - Introductie in private equity

22 Masterclass VBA - Introductie in private equityII Institutional Investors – Cash flowsCash flows private equity fundsInvestors’ commitments are only gradually invested by the fund and often not all committed capital will be investedThe first distributions from liquidated (=sold) investments already occur before all committed capital has been investedMasterclass VBA - Introductie in private equity

24 Masterclass VBA - Introductie in private equityII Institutional Investors – Cash flowsOvercommitmentIn practice institutional investors commit more than the target allocation: this is called overcommitmentHistory shows that there is not one optimal overcommitment%Masterclass VBA - Introductie in private equity